Commercial health insurance, also known as private health insurance, is health insurance provided and administered by nongovernmental entities. It is the most common form of health insurance in the United States, covering nearly two-thirds of Americans, most of whom receive coverage through their employer. Commercial health insurance policies are primarily sold by for-profit public and private carriers, and they vary widely in the amount and types of specific coverage that they provide. Commercial health insurance can be categorized according to its renewal provisions and the type of medical benefits provided. It can be sold individually or as part of a group plan and is offered by public or private companies.

Commercial health insurance is different from insurance provided by a public or government program, such as Medicaid, Medicare, or the State Childrens Health Insurance Program (SCHIP) . Commercial health insurance companies include Aetna, Anthem, Cigna, UnitedHealthcare, and Humana.

If you get health insurance through your employer, the business contracts with a health insurance company or companies. Employees get to choose between those plans, and members typically pay a health insurance premium to get health coverage. Commercial health insurance plans work like any other plan. The health insurance companies contract with healthcare providers to create provider networks, including physicians and hospitals. Those contracts determine how much providers get paid.